Budget 2024: Positive Impact: Companies see increased focus on post-harvest activities and rural housing scheme, among other measures, boosting rural consumption in mid to long term.
Finance Minister Nirmala Sitharaman proposed higher direct and indirect taxes in the interim Budget 2024 to boost India s economy. The gross tax revenue for fiscal 2025 is estimated to be Rs 38.31 lakh crore, up 11.45% from the revised target for this fiscal year. The government aims to raise Rs 21.99 lakh crore from direct taxes and Rs 16.31 lakh crore from indirect taxes in fiscal year 2025. The revised direct tax collection aim for the current financial year is Rs. 19.45 lakh crore, while indirect tax collection is revised to Rs 14.92 lakh crore.
India s interim budget is eagerly awaited by the middle class, who have high expectations for relief in income tax through adjusted tax slabs and expanded exemptions. The budget is also anticipated to address employment concerns and generate more job opportunities. Affordable housing, education, and healthcare take center stage, with hopes for interest rate reductions, increased subsidies, and improved infrastructure. The budget is expected to offer price relief by regulating food prices and stabilizing inflation. Additionally, investments in digital infrastructure and comprehensive measures for post-retirement schemes are anticipated. The budget announcement on February 1 will be closely watched by India s middle class population during the Lok Sabha elections.